NIL: IRS Chief Counsel says NIL Collectives are NOT 501(c)(3)

The recipients should be paying taxes …

 

That's how it was "supposed" to work. But a lot of us knew well before how it would REALLY work. It was obvious this was going to happen when they made it that vague. Hell, UGA and Bama have probably been doing something along these lines (consolidation and coordination of all booster funding) for at least a decade. Now it's legal for everyone.

 

The collectives do require engagements. The athletes do signings, podcasts, and other events. The collectives are a way for smaller donors who want to contribute but don’t give enough to make much difference on their own. If larger donors donate to the collectives, they do recieve benefits and access. Look at the collectives websites. They tell you what you get at what level.

If you own a car dealership and want to make a deal on your own, you can. That’s all explained on the gators nil website too.

 

The NIL ads I've seen so far are completely dorky. Nobody knows who they are, they're just somebody wearing a college T-shirt.

 

Probably because there is no real market for these "services". For a Tebow? Sure. But even someone like Riley Cooper (good player, starter) isn't enough to move the needle marketing wise. It is what it is, a way to pay players to play for your school.

 

Not sure this is true. In some cases land is inherited by cash strapped individuals who don't have the means to pay the inheritance tax on their families estate. While they can sell to pay the tax, in some cases this means the family business goes with it.

 

Property is calculated at current value. The exclusion for 2023 is around $12.9M. My Grandfather stubbornly refused to add his wife to the title of his property holdings before he died so what would have been a typical transfer of ownership to the surviving spouse became a nasty tax bill for the Family when he passed. This was 40 years ago when the exclusion was a lot lower than it is now.